I examine why the populations of certain countries are so much more satisfied with their lives than the rest of the world. In cross-country analyses, income per capita, economic uncertainty and expectations for the future are robust predictors of happiness while a social capital measure emerges strongly and robustly associated with happiness. Moreover, the effect of investing in social capital is remarkably strong compared to the alternatives. I conclude that the populations in a few Northern European countries are probably the happiest in the world because of their high levels of social capital more than their pecuniary affluence.
Bjørnskov, C.(2003). The Happy Few. Cross-Country Evidence on Social Capital and Life Satisfaction